South Africa's Sekoko Coal said on Tuesday it has signed a memorandum of understanding with power utility Eskom for the possibility of supplying coal to the utility's Matimba power station.

The company said the coal could come from the Waterberg coal project, its joint venture with Firestone Energy, which is expected to start production in April 2012.

Coal production will start at about 43,000 tonnes per month in April 2012 from an open pit, ramping up to 83,000 tonnes per month by April 2015, it said in a statement.

An offtake agreement between the company and Eskom has yet to be concluded.